I don't understand, if you DCA in a leverage ETF and buy more at the bottom what's the problem? I've been doing that with TQQQ and it has been giving me some of the best returns in my portfolio.
Last 2 yr NVDL returns: 20 times NVDA: only 8 times In long term, if the stock grows, leveraged ETF does too. If it is constant, ETF underperforms. In this example, TSLA had dropped and hence the gap b/w TSLA & TSLL. Kindly let me know if I'm wrong. I'm thinking of investing $75K.
@ Is it safe to invest in leveraged ETFs? Has there ever been a fund that went bankrupt? I'm scared to invest a hefty amount into such small-volume funds and not the underlying stocks themselves.
@@nirajpatil3061 I assume there is some that have went bankrupt cuz they over leveraged and did an insane bet. But most do good long term at least the direxion ETFs I find do good! Maybe stick to what direxion comes out with. They have tsll for 2 x leverage tsla. There 3x tech one is solid I have 40k In it. 30 of that is profit. Tecl and there s&p one is good got 50k in that up 250% spxl is the ticker for that one
@@nirajpatil3061 don’t put more then 10-20% of your portfolio into leverage ETFs!! Make sure the other 80% is in safe stuff like vfv and zqq if your Canadian. If your American put 80% of your portfolio into the us version of vfv and zqq. U should be fine at that point.
Just did the analysis because wife wanted me to. Let’s assume Tesla went down 30 percent Day 1and then up 30 percent on Day 2 how does Tesla vs TSLL do? If I have $500 in Tesla, it goes down to $350 on Day 1. Then back to $455. So lost only 9 percent from start of Day 1. For TSLL on Day 1 the etf decreases from $500 to $200(60% decrease). At end of Day 2 the etf is $320. So lost 36 percent from start of Day 1.
What's the downside of trading leveraged ETFs? Even if we get assigned, it's tied to a stock we don't mind owning, right? For example, I hold TSLA in my portfolio, but I don't want to play options on it because I either don't want it called away or I don't have the budget to sell puts. TSLR seems like a good alternative for weekly put options. I don't see much downside here-am I overlooking something? I’d appreciate your thoughts on this. :)
That’s what I’m thinking about trying, selling cash covered puts on the leveraged tsla like tsll because they are less expensive than tsla options! Have you tried it yet?
At most I seen TSLL go down 20% in a day and on a year from now basis tsll has outperformed tsla by 40% not exactly a 2x, but even taking all the big hits you would still be up
Thank you for confirming my suspicion on these leveraged ETFs. Your lists of reasons along with your brief and concise explanation was very helpful. These ETFs might be useful for short term or swing traders but not for longer term investors.
I don't understand, if you DCA in a leverage ETF and buy more at the bottom what's the problem? I've been doing that with TQQQ and it has been giving me some of the best returns in my portfolio.
What happens if the stock price crashes, and you don't have any extra cash to buy at a low cost? You'll be screwed.
Last 2 yr NVDL returns: 20 times
NVDA: only 8 times
In long term, if the stock grows, leveraged ETF does too. If it is constant, ETF underperforms.
In this example, TSLA had dropped and hence the gap b/w TSLA & TSLL.
Kindly let me know if I'm wrong. I'm thinking of investing $75K.
I’d say your right! I’ve been investing in spxl and tecl for the last 6 years and I’ve done insanely well. And those are 3 x leverage
@ Is it safe to invest in leveraged ETFs? Has there ever been a fund that went bankrupt? I'm scared to invest a hefty amount into such small-volume funds and not the underlying stocks themselves.
@@nirajpatil3061 I assume there is some that have went bankrupt cuz they over leveraged and did an insane bet. But most do good long term at least the direxion ETFs I find do good! Maybe stick to what direxion comes out with. They have tsll for 2 x leverage tsla. There 3x tech one is solid I have 40k In it. 30 of that is profit. Tecl and there s&p one is good got 50k in that up 250% spxl is the ticker for that one
@@nirajpatil3061 don’t put more then 10-20% of your portfolio into leverage ETFs!! Make sure the other 80% is in safe stuff like vfv and zqq if your Canadian. If your American put 80% of your portfolio into the us version of vfv and zqq. U should be fine at that point.
As long as TSLA is good TSLL is good too. If TSLA is good for long term why not TSLL? Am I wrong?
that's how I see it but that's not what i'm reading from different sources but i'm willing to experiment.
Just did the analysis because wife wanted me to. Let’s assume Tesla went down 30 percent Day 1and then up 30 percent on Day 2 how does Tesla vs TSLL do? If I have $500 in Tesla, it goes down to $350 on Day 1. Then back to $455. So lost only 9 percent from start of Day 1. For TSLL on Day 1 the etf decreases from $500 to $200(60% decrease). At end of Day 2 the etf is $320. So lost 36 percent from start of Day 1.
@@d2cheung if Tesla was on track to drop 30% in a day, the stock market would probably halt trading … they wouldn’t let that happen in one day
What's the downside of trading leveraged ETFs? Even if we get assigned, it's tied to a stock we don't mind owning, right? For example, I hold TSLA in my portfolio, but I don't want to play options on it because I either don't want it called away or I don't have the budget to sell puts. TSLR seems like a good alternative for weekly put options. I don't see much downside here-am I overlooking something? I’d appreciate your thoughts on this. :)
That’s what I’m thinking about trying, selling cash covered puts on the leveraged tsla like tsll because they are less expensive than tsla options! Have you tried it yet?
James if we were to sell cash secured puts on the tsll leveraged play would the option protect from the daily reset loss?
At most I seen TSLL go down 20% in a day and on a year from now basis tsll has outperformed tsla by 40% not exactly a 2x, but even taking all the big hits you would still be up
Is it just twice the upside and twice the downside? Or 3 times the upside and 3X the down depending on the leverage?
Perfect. Thank you!
Thank you for confirming my suspicion on these leveraged ETFs. Your lists of reasons along with your brief and concise explanation was very helpful. These ETFs might be useful for short term or swing traders but not for longer term investors.
Nah nothing wrong with leveraged stocks.
Are you being sarcastic?
@@Blackwater2what do you think will happen to this stock after the release of the robo taxi
@@damatricrayton8942 wdym
@@damatricrayton8942 bound to go up if he can sell enough of em